Booking.com losing ground to other OTAs
D-Edge's latest Hotel Distribution Report for 2024, an analysis of the past five years reveals some notable shifts in online booking behavior
The report, based on data from nearly 5,000 independent hotels and small hotel groups in Europe and Asia, offers valuable insights for hoteliers adapting to the changing digital scene. It emphasizes the resurgence of international travel, particularly in Europe, where it comprised 69% of online booking revenue in 2023, contrasting with Asia's 18%.
Key takeaways
- In 2023, Europe experienced a remarkable 68% increase in the Digital Revenue Index (DRI) compared to 2019, with Asia also witnessing impressive growth at 52%. These figures indicate not just recovery from the pandemic but also substantial progress beyond pre-pandemic standards;
- Average daily rates (ADR) have experienced robust expansion due to a blend of robust travel demand and elevated ATP. In Europe, ADR surged by 33.8% from 2019, paralleled by a 33.3% increase in Asia. Nevertheless, the report highlights that actual rate growth was tempered by elevated inflation rates, hinting at a possible price ceiling;
- The market share for direct bookings has increased, with Asia leading this trend. In 2023, direct bookings accounted for 32% of online revenue in Asia, compared to 28.8% in Europe;
- Booking.com retained its leading position in Europe's online distribution sector, contributing 43% of hotels' online revenue. However, the report highlights a shift towards diversified distribution channels, as Booking.com ceded some market share to other OTAs in 2023.
Download the full report at D-Edge